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Fly News Breaks for January 28, 2019
DOX
Jan 28, 2019 | 08:09 EDT
Baird analyst William Power said the authors of the short report about Amdocs that was published last week raised "a number of fair questions," though he said most of them aren't new and many have reasonable answers. While total receivable and unbilled receivable DSOs being at all-time highs is not ideal, the fact is also not new and he believes the higher DSOs are tied to recent transformation deals that utilize percentage of completion accounting and include staggered milestones. Power keeps a Neutral rating on Amdocs and said more disclosures around several items, including higher unbilled receivables, receivables factoring, and M&A revenue impacts, would be welcome, adding that he "would not be surprised by at least a trading bounce" given the company's opportunity to address the questions and the stock's trough valuation.
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